Hong Kong SFC-Authorised Fund

The Securities and Futures Commission (SFC) sets out the basic principle underlying the authorisation of unit trusts and mutual funds under the Code on Unit Trusts and Mutual Funds (“UT Code”)

Key Features

Funds that are offered to the public in Hong Kong are legally required to obtain prior authorisation from the SFC, unless one of the exemptions in the Securities and Futures Ordinance (”SFO”) applies.

Legal Requirements

Requirements	Description
General
Corporate  vehicle permitted	Company, Unit trust, Limited Partnership
Local physical office required	No
Share capital or equivalent
·         Minimum subscription	None
·         Minimum investors	None
Directors
Minimum number	1
Corporate directorship allowed	Yes
Local director required	No
Service Providers Required
Custodian	Yes
Fund manager/Investment manager	Yes
Fund administrator	No
Auditors	Yes

Tax Treatment

• The profits tax exemption will apply to publicly offered fund entities and to privately offered fund entities whose central management and control is located outside Hong Kong.
• Onshore privately offered entities remain subject to profits tax at the rate of 16.5% for income derived from Hong Kong.
• Profits derived from outside Hong Kong is tax exempt. There is no withholding tax on interest or dividends and no capital gains tax.
  

Duration to Set Up

About 3 months

Distinctive Benefits of Licence

• Hong Kong imposes no restrictions on foreign investments and has no foreign exchange controls
• Ease of business establishment and licensing
• Favourable tax regime
• Conducive regulatory environment with formidable anti-money-laundering legislation

The Valsen Advantage

• End to end comprehensive service
• Speedy and efficient service
• Expert advice on structuring options
• Dedicated ongoing compliance support
• Extensive network pool of service providers